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How about a blanket rule for War engines of important damage on 5+ when hit, then roll on the following table:
1: no effect
2-4: 1 extra DC of Dmg
5-6: critical as described.
Criticals therefore occur slighty less often, but War engines do take more DC of dmg on average.
This basically adds an extra critical to the titans which I'm not really sure is warranted. As MadDoc says, the problem isn't so much the durability as the lack of firepower degradation as the titan takes damage. All the way up until the unit is destroyed, it functions just as well as it did at full health. The point here is to spitball a means of reducing the firepower either as the titan takes BM or as the titan takes damage to the hull.
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Edit: I would be very interested in such a project and could provide any number of playtests, if you wish.
I appreciate the sentiment, but this is really a off the wall side idea and I'd much prefer that testing happen with the actual AM lists rather than this at least for the time being.

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Titan Suppression: when a titan has a greater number of BM then remaining DC, it may only use half it's weapon systems in any turn(rounding down). This represents the Tech Priests diverting emergency power, conducting repairs or sheer system damage.
I chose rounding down becuase it makes the warlord much more durable than a reaver, which seems correct (and warlord represent a much bigger point investment)
I like the sound of this, but I think it really screws the reaver. It's a considerably larger titan than a warhound but under this rule it effectively puts out the same firepower once it starts collecting BM. Granted it does take more before something happens but the effect is the same. Of course, rounding up does the opposite giving the warlord the short end of the deal.